THE STRUCTURE-CONDUCT-PERFORMANCE PARADIGM AND THE BEER INDUSTRY IN ZIMBABWE

Author's Name: Clainos Chidoko and Rose Constancia Sakuhuni & Shylet Mufandaedza
Subject Area: Social Science and Humanities
Subject Economics
Section Research Paper

Keyword:

S-C-P paradigm, Beer industry, Concentration, Causal relationship, Market structure, Informal.


Abstract

The beer industry has the greater market share owned by the informal sector which holds a larger share of home brew market. To investigate the beer industry the study utilized the Structure-Conduct –Performance paradigm to link the structure of the market, the conduct of the firms in the market and their economic performance. The results show that Zimbabwe’s beer industry has a competitive market structure and high levels of industrial concentration in commercial produced beer. Low-end beer industry in Zimbabwe has low entry barriers resulting in plenty of low-end beer business and low quality of products, which determine the fierce competition of the market.

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